Short-Term Rental Tax in Indiana (IN)
The state-level tax rate on short-term rentals in Indiana is 7.0% , consisting of 7.0% sales tax and 0.0% lodging tax. Indiana applies general sales and lodging taxes to STRs without STR-specific legislation. Major platforms like Airbnb collect state taxes automatically. With local taxes, the total rate in Indianapolis reaches 13.0%. STR operators must register with the state. Indiana charges a 7% state sales tax on short-term rentals (less than 30 days). No state lodging tax, but counties may impose a local innkeeper's tax of up to 5-6%.
Annual Tax Estimate for Indiana
The table below shows estimated annual tax obligations at different nightly rates, assuming 65% occupancy (237 nights/year). Estimates are shown for both the state-level rate and the highest local rate (Indianapolis).
| Nightly Rate | Gross Revenue | State Tax (7.0%) | Indianapolis Tax (13.0%) |
|---|---|---|---|
| $100.00/night | $23,700 | $1,659 | $3,081 |
| $150.00/night | $35,550 | $2,489 | $4,622 |
| $200.00/night | $47,400 | $3,318 | $6,162 |
| $300.00/night | $71,100 | $4,977 | $9,243 |
| $500.00/night | $118,500 | $8,295 | $15,405 |
Estimates assume 65% occupancy. Actual tax may differ based on local exemptions, booking fees, and platform collection.
STR Tax Rates by City in Indiana
Local taxes significantly impact the total STR tax burden in Indiana. The table below shows combined state + local rates for 3 cities, sorted by total rate. The highest combined rate is 13.0% in Indianapolis.
| City | Local Tax | Total Rate | Tax on $200/night | Tier | Notes |
|---|---|---|---|---|---|
| Indianapolis | 6.0% | 13.0% | $26.00 | High | Marion County 6% innkeeper's tax. |
| Nashville (Brown County) | 5.0% | 12.0% | $24.00 | High | Brown County 5% innkeeper's tax. Popular tourist area. |
| Bloomington | 5.0% | 12.0% | $24.00 | High | Monroe County 5% innkeeper's tax. |
How Indiana Compares to Other States
Below is a comparison of Indiana with five states that have similar state-level STR tax rates. This comparison helps illustrate where Indiana stands relative to other states in terms of tax burden, platform collection, and registration requirements.
| State | State Rate | Sales Tax | Lodging Tax | Platform Collects | Registration |
|---|---|---|---|---|---|
| Indiana (IN) | 7.0% | 7.0% | 0.0% | Yes | Required |
| Kentucky (KY) | 7.0% | 6.0% | 1.0% | Yes | Required |
| Mississippi (MS) | 7.0% | 7.0% | 0.0% | Yes | Required |
| Tennessee (TN) | 7.0% | 7.0% | 0.0% | Yes | Required |
| Minnesota (MN) | 6.9% | 6.9% | 0.0% | Yes | Required |
| Nevada (NV) | 6.8% | 6.8% | 0.0% | Yes | Required |
Frequently Asked Questions About Indiana STR Taxes
What is the short-term rental tax rate in Indiana in 2026?
The state-level tax rate on short-term rentals in Indiana is 7.0%, consisting of 7.0% sales tax and 0.0% lodging tax. Local taxes can bring the total to 13.0% in cities like Indianapolis. At $200/night with 65% occupancy, the state-level tax alone is approximately $3,318 per year.
Does Airbnb collect STR taxes in Indiana?
Yes. Airbnb, Vrbo collect state sales tax. However, local and county taxes may not be covered by platform collection. Always verify with your local tax authority what taxes your platform collects on your behalf.
Do I need to register my short-term rental in Indiana?
Yes. Indiana requires STR operators to register with the state. This typically includes obtaining a sales tax permit and/or lodging tax registration. Many cities and counties in Indiana also require local STR permits or business licenses. Check with both state and local authorities for specific requirements.
What is the total STR tax rate in Indianapolis, Indiana?
The total combined tax rate in Indianapolis is 13.0%, which includes the 7.0% state rate plus 6.0% in local taxes. Marion County 6% innkeeper's tax. At $200/night with 65% occupancy, this amounts to approximately $6,162 per year in taxes.
How much will I owe in STR taxes in Indiana?
Your annual STR tax depends on your nightly rate, occupancy, and location. At the state level (7.0%), a property earning $200/night with 65% occupancy would owe approximately $3,318/year in state taxes alone. In Indianapolis, the total tax at the same rate would be approximately $6,162/year. Use our STR tax calculator for a customized estimate.
Calculate Your Indiana STR Tax
Use our STR tax calculator to get a personalized estimate of your annual tax obligation in Indiana. Enter your nightly rate and occupancy to see your projected state and local taxes, or browse all 50 states to compare STR tax rates across the country.